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As production increases, Simandou's mega-mine in Guinea is being overshadowed by mass layoffs
Guinea's Simandou Mega Mining Project, promoted by the government's military as a symbol for the country's transformation in terms of economics, is now laying off tens of thousands of workers as it finally begins to export iron ore, after years of delays and scandals. Simandou, the first election since the 2021 military coup that brought Mamady to power, was launched in November with pomp and?a public holiday. Political analysts believe that the junta's leader will be the favorite to win and could stay in power for seven more years. Guinea, even without Simandou - the largest untapped iron ore reserve in the world - is the biggest exporter of aluminium bauxite. Its mining wealth, however, has not improved the lives of many people. World Bank data from 2025 revealed that more than half of the population lives in poverty. We interviewed 12 workers, former employees and senior sources from the company. They asked not to be identified because the matter was sensitive. They said that the process of firing thousands of employees had already begun. Simandou's plans to produce 120 million metric tonnes of iron ore per year, or 7% of the global demand, is a disappointment for all those who had hoped that their lives would improve in the long run. EMPLOYMENT RISES TO MORE THAN 60 000 Companies and government sources said that the number of jobs created by Simandou would peak at over 60,000 in 2024-2025. This was because contractors were racing to meet the deadlines set forth by Guinea's ruling military to speed up iron ore exports, which had been delayed for nearly 30 years. The mines, ports and 670 km (416 miles) of railway, which was built specifically to facilitate exports from this landlocked project, will require less than 15,000. Two consortia are involved in the project - the Winning Consortium Simandou (WCS), which is mainly composed of Chinese companies, and Rio Tinto. The way that the work is organised, the reduction in the workforce is extreme. The executive said that the project was "simultaneous spread", meaning all sections were built simultaneously, and the construction workforce was boosted to the peak. "Then, everything finishes, so the whole thing falls off the cliff." WCS, who manages the majority of the rail via more than 12 subcontractors did not respond when asked for comments on its workforce. Rio Tinto is responsible for two mine blocks and 78 km of rail that connects them to the main railway network. It also manages the transshipment facilities in the new port located on the Atlantic coast of Guinea. It has employed around 25,000 people, 82% of whom are Guineans, during the construction phase. A spokesperson for Rio Tinto stated that the Simfer project would require "a workforce of approximately 6,000 people to work at a terminal for transshipment vessels at the port and in the mine." The mine construction and rail construction are scheduled to be finished next year. Work at the port is expected to continue until 2027. Chris Aitchison said that he was concerned about the risks posed by sudden job loss, also known as demobilisation in the industry. It's what's coming next? He said. He said. In similar projects, like Mongolia's Oyu Tolgoi Copper Mine, former mining workers had more job options. Risk of Social Unrest and Accidents Sources in the workforce said that job cuts had already begun. In Dantilia (a hub near the border with Sierra Leone) 8,000 out of 10,000 workers lost their jobs in the past three months. The remaining 2,000 workers have been informed that their jobs are going to end in the next few months. The workers in Kamara, which is part of the same district said that around 1,500 workers had already been fired. "We're waiting in hope, but they don't yet have any solutions and haven't made any promises," said a Winning Consortium Simandou pick-up driver, who asked not to be identified. "There's no other job." According to three Western companies, there is growing concern that a reduction in staffing may increase the risk of accidents and social unrest. They were concerned about possible community protests, which could take the form of blockades on the Simandou Railway, where trains had already killed cattle and angered local residents who depended on their livestock. Sources at the company said that risk assessments conducted by consortia over the past six months highlighted the areas where people or animals could wander onto tracks and derail them, leading to the construction of fences, which the original design had not provided for. Reports in March stated that 12 workers died as a result of accidents while working on the railway project at Simandou between June 2023 to November 2024. At least five locals were also killed in traffic accidents caused by vehicles used for the construction. Rio Tinto reported five more worker deaths. Bouna Sylla, the Minister of Mines, said that the government is strict with partners regarding safety and environmental protection. GOVERNMENT PROMISES FOR FUTURE WORK The impact of job losses is magnified by Guinea's narrow skill base and lack of income buffers. Sylla, who spoke to the media days before Simandou's launch on 11 November, acknowledged that the layoffs will be painful. Sylla stated that it is not easy to lose a job after earning a good salary and waking up every morning for work. He described the government's plans for new infrastructure, such as roads, refineries, and power plants. However, he didn't give a time frame. The official launch of the new export terminal at Morebaya, on Guinea's Atlantic Coast, was full of energy, featuring brass bands, honor guards, traditional dancing and visiting dignitaries. Doumbouya, wearing a white Guinean Boubou tunic, watched from the sidelines. Guinea's military-led government is promoting "Simandou 2020" as a 15 year strategy for transforming the country into an economy based on investments in agriculture, transportation, technology, finance, and health. The government owns a 15% stake and has estimated that the cost of the plan will be $200 billion. This would be partially funded by mining revenue, but the majority should come from private capital. Sylla stated that the Administration et Controle des Grands Projets, Guinea's infrastructure agency was currently working on feasibility analyses. Two sources confirmed that the government had also commissioned KPMG to produce a report on reemployment programmes. The report will be released after the elections. KPMG declined to comment on a request. The agency for infrastructure said that the plans include 3,000 km of new highways, which will be built over 15 years. The Long Wait for Prosperity Nearly 30 years after Rio began exploring the deposit, there is still no answer to the question whether Simandou will bring prosperity to most of Guinea. In its May publication "Selected Issues" on Guinea's Economy, the IMF published a paper entitled "Guinea's Economy: A Selective Issues Paper". The macroeconomic effects Simandou will have on 2024 were modelled. The report found that it could increase the real GDP of the country by 26% by 2030. However, it said that the reduction in poverty would be minimal - only 0.6 percentage points - without policies to manage the change. It said that the project's effect on increasing the number skilled workers "could even worsen inequality, particularly in rural areas." Clara Denina, Maxwell Adombila Akalaare and Barbara Lewis contributed to the report.
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Palm oil prices rise on the back of bargain-buying, while soyoil is spread.
Malaysian palm futures rose on Thursday for the?second session in a row, boosted by bargain-buying and an improved price competition against soyoil. By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for March delivery had gained 30 ringgit or 0.76% to $3,996 ringgit (US$978.21) per metric ton. Paramalingam Supramaniam is the director of Selangor brokerage Pelindung Bestari. He said that traders are buying the price drops following the recent sell-off. The price of palm oil also has become "increasingly appealing" compared to the prices for other oils, especially soybean oil. Dalian's palm oil contract gained 1.27%, but its most active soyoil contract dropped 0.31%. Prices of soyoil on the Chicago Board of Trade rose?0.45%. As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils. Market participants assessed the risks of a blockade on Venezuelan oil tankers, which could threaten the supply. Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger. The palm ringgit's trade currency, the dollar, edged up 0.05%, making it slightly more expensive for buyers with foreign currencies. A circular posted on the Malaysian Palm Oil Board's website revealed that Malaysia had lowered the crude palm oil price reference for January 2026 to a level which would lower the export duty from 13% to 9.5%.
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Woodside shares tumble as CEO departs for BP
Australian shares recovered early losses and closed little?changed? on Thursday. Gains in heavily-weighted miners offset?a??drop? in top oil & gas producer Woodside Energy, after its CEO announced a surprising move to lead BP. After a three-day decline, the S&P/ASX 200 Index fell up to 0.4% and closed unchanged at 8,588.20. The main index, however, was on track to end its last full trading week in 2025, with a 1.3% drop, as sticky inflation and strong economic growth shattered expectations of future interest rate reductions. The markets now expect the central bank to make its next move upwards in the second half of next year instead of the rate cut they had expected earlier. Craig Sidney is a senior investment adviser at Shaw & Partners. "Volumes are expected to dry up significantly by Monday. Therefore, moves can be made in either direction." Banks finished flat with losses at the "big four" remaining banks offset by a 0.7% gain in Australia's top lender Commonwealth Bank of Australia. Energy stocks fell to their lowest closing in almost two months. This was led by a drop of 2.7% in?Woodside Energy. Woodside, the oil and gas company, has posted its lowest closing since late October following Meg O'Neill's departure to lead BP Plc. Woodside merged BHP's petroleum division with Woodside to form a top 10 independent?oil-and-gas producer in the world valued at $40 billion. It also doubled its production of oil and natural gas. Iron ore prices rose and miners eked out 0.2% gains. Sidney says that the sector, which usually outperforms when there is a strong Australian currency, will continue to gain next year, as rate hike expectations would lead to an increase in the Australian dollar. The benchmark S&P/NZX50 index in New Zealand fell 0.3% to 13,256.77. This is its lowest closing since late September. The third-quarter data confirmed early signs of a recovery in the economy. (Reporting and editing by Subhranshu S. Sahu in Bengaluru. Nikita Maria J. Jino is based in Bengaluru.
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The MORNING BID EUROPE - BoE will make it to the list as the others remain on course
Tom Westbrook gives us a look at what the future holds for European and global markets. The markets expect that the Bank of England will be the sole mover in a series of central bank meetings on Thursday. A 25-basis point rate cut to 3.75 percent is almost as predictable as the collapse of the top order at the Ashes Test in Adelaide. Investors were reassured by the unexpected drop in UK inflation on Wednesday. However, with inflation at the highest level among G7 countries, 3.2%, it is unlikely that further rate cuts will be imminent. Sterling is down to $1.3374. It is expected that the European Central Bank will keep its rates at 2%, signaling a lack of appetite for rate cuts. The bank may also increase its growth forecasts. The central banks of Sweden and Norway will also remain at their current rates, which are 1.75% and 4.0% respectively. Meg O'Neill is the new CEO of BP, the British oil and natural gas company. She was previously the CEO of Australia's Woodside Energy. BP wants to refocus its efforts on hydrocarbons following a diversion into renewables. Sources say that activist investor Elliott Management is in the process of lining up potential candidates for CEO. President Donald Trump announced in a rare evening speech from the White House that he would pay a "warrior's dividend" of $1,776 to 1,45 million U.S. military personnel. Investors should take note of Trump's statement that he will soon announce the choice for the next Federal Reserve chair, adding "someone who is a big believer in lower interest rates". The November U.S. Inflation data will be released on Thursday. However, it won't include a comparison of the month to month figures because October numbers were not collected due to the U.S. Government shutdown. The markets were roiled by AI fears that started on Wall Street. Asian bourses also suffered losses, while oil prices rose on the news of U.S. sanctions against Russia for its Venezuelan blockade. Oracle, a texan cloud computing firm, is the main focus of concern. Shares fell 5.4% when it announced that a deal for equity to support a project for a data centre would not include Blue Owl Capital as a partner. Stocks have fallen by almost 50% since mid-September, when a deal made with OpenAI led to a 35% rally in a single day. The Bank of Japan has begun a two-day session in Tokyo that is expected to result in a rate increase on Friday. If the markets aren't convinced of further increases, the yen could be the focus of sales. The following are key developments that may influence the markets on Thursday. Decisions made by the Bank of England and European Central Bank. Riksbank, Norges Bank US November CPI
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Investors weigh the future US interest rate cut, and AI bubble as they consider copper.
The market was focused on the future interest rate path in the United States, as confidence in artificial intelligence trades waned. As of 03:30 GMT, the most traded copper contract at the Shanghai Futures Exchange was?down 0.03% to 92360 yuan (US$13,114.85). The benchmark copper for three months on the London Metal Exchange fell 0.43%, to $11,686 per ton. In his Wednesday national address, U.S. president Donald Trump stated that the next Federal Reserve chairman will be someone who is a believer in lower interest rates by "a lot". Trump has previously stated that he would announce his choice for Fed Chair Jerome Powell, whose tenure ends in May next year. The President made his comments a week after the Fed cut its policy rate by 25 basis point, helping copper outperform other base metals. Market participants are unsure whether the known finalist -- White House Economic Adviser Kevin Hassett and Federal Reserve Governors Kevin Warsh or Chris Waller -- will lower rates to Trump's liking. The U.S. Dollar rose slightly. The dollar's strength makes commodities priced in greenbacks more expensive to investors who use other currencies. Despite the growing skepticism about AI, Oracle's data centre partner Blue Owl Capital was reported to have backed a $10 billion contract for its next facility. This is due to concerns over debt and rising spending. Copper is a "key metal" used in data centres. Red metal is still supported by supply shortages and demand prospects, which have limited the extent of today's drop. Aluminium was up by 0.09%. Zinc gained 0.35%. Lead rose by 0.15%. Nickel gained 0.66%. Tin surged 3.10%. Thursday, December 18 DATA/EVENTS (GMT) 0745 France Business Climate Mfg, Overall Dec 1200 UK BOE Bank Rate Dec 1315 EU ECB Refinancing, Deposit Rate Dec 1330 US Core CPI MM SA, YY NSA Nov 1330 US CPI Wage Earner Nov 201330 US Initial Jobless Clm 13, w/e 1330 United States Philly Fed Business Indx Dec ($1 = 7.0424 Chinese yuan renmin Thursday, December 18, DATA/EVENTS, GMT 0745 France Business Conditions Mfg Overall Dec 1200 UK BOE Rate Dec 1315 EU ECB refinancing, deposit rate Dec 1330 US Core Consumer Price Index MM SA YY NSA November 1330 US Wage Earner Nov 201330 US Philly Fed Indx Dec (1 = 7.0424 Chinese yuan renminbi). (Reporting and editing by Dylan Duan, Lewis Jackson, Harikrishnan
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Qatar reduces the February term premium on al-Shaheen crude, according to sources
QatarEnergy lowered the term premium on the?al-Shaheen oil loading for February, according to several 'trade sources'. This was due to the weakness of the spot benchmark premiums. The company, which is owned by the state, set February's prices at 53 cents per barrel over Dubai's quotes. This was down from 84 cents in January. Loading of January cargoes The price reduction?followed the decline in spot premiums of Middle East crude oil so far in this month. This was weighed down by abundant supplies on the?market, and an outlook for a surplus in 2026. QatarEnergy has sold five cargoes to Glencore, Indian refiners Reliance, and HPCL-Mittal Energy Ltd at premiums of around 42 cents per barrel, according to the sources. Separately, 'Qatar awarded an oil cargo from Qatar Marine at a discount price of 60 cents per barrel to Unipec - the trading arm of Sinopec - and a Qatar Land cargo to Reliance?at an additional premium of 30 cents, according to the sources. Companies typically do not comment on business deals. Each cargo is 500,000 barrels.
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US crude futures surge in Asia due to Trump's Venezuelan blockade
U.S. crude oil futures were a dollar higher in Asian trading Thursday after President Donald Trump imposed a 'blockade' on tankers entering or leaving Venezuela. Most exports remained on hold. As of 1109 GMT, the West Texas Intermediate contract had risen 98 cents or 1.75% to $56.92 a barrel. Trump had on Tuesday ordered a 'blockade' of all sanctioned tankers entering or leaving Venezuela, calling the administration of President Nicolas Maduro a foreign terrorist group. Sources said most Venezuelan ?exports remained On Hold Wednesday, due to the 'blockade' even though Venezuelan state oil firm PDVSA had resumed loading crude and fuel after having to suspend operations following a cyberattack. Chevron vessels continued to depart for the U.S. Tony Sycamore, IG's market analyst, said that "while enforcement details are unclear," the sudden escalation of U.S. sanctions against the Maduro regime has sparked concerns about supply disruption and triggered a short covering in an oversold market. Oil prices rose after the?news. The dollar rose by more than 1% during the previous session. This was a rebound from five-year lows, largely due to progress in Ukraine peace talks which seemed to indicate a possible easing of Russian sanctions. (Reporting and editing by Chris Reese, David Gregorio and Colleen Waye)
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Tinubu, Nigeria's Tinubu, nominates new oil regulators following the resignation of chiefs amid Dangote dispute
Bola Tinubu, the Nigerian president, has asked the Senate to confirm a pair of new oil and gas regulators in Nigeria after their predecessors abruptly quit. This was due to a high-stakes conflict between an agency and Africa's wealthiest man, Aliko Dagote. Tinubu was nominated after Gbenga?Komolafe - the former chief executive of Nigerian Upstream Petroleum Regulatory Commission - and Farouk Ahmed - the head of Nigerian Midstream & Downstream Petroleum Regulatory Authority – left their positions. Dangote has accused Ahmed of allowing the entry of cut-price fuel imports that ?threaten local refineries, including his 650,000-barrel-per-day Lagos plant, Africa's largest. Dangote filed a?petition on Wednesday against Ahmed at one of Nigeria's anti-graft agencies – the Independent Corrupt Practices and Other Related Offences Commission. Komolafe has clashed over the failure of Dangote to enforce a law requiring that producers prioritize local refineries. The shake-up occurs at a crucial moment for Africa's largest oil producer. Regulatory uncertainty and fears about supply have been dominating headlines ever since Dangote filed a formal complaint against Ahmed citing concerns over governance and personal expenditures beyond declared income. Analysts say the resignations will not have a significant impact on the oil sector. Oritsemeyiwa Eyesan is Komolafe’s preferred successor. He spent over three decades with the state oil firm, including as a director of one of its subsidiaries. Saidu Aliyu Muhammad, Farouk’s successor, has been named as an independent nonexecutive Director at?Seplat Energy. He has over 37 years' experience and led a division at NNPC and helped draft Nigeria’s Gas Master Plan. "I do not think that these resignations will adversely affect investor trust," said Ayodele ONI, a partner and energy lawyer with the Lagos-based Bloomfield Law firm. Tife Owolabi contributed additional reporting from Yenagoa, and Isaac Anyaogu from Lagos. Elisha Gbogbo wrote the article. Bernadette Baum edited it.
Saudi Arabia's annual rate of inflation slowed to 1.9% in Novembre
According to government data released on Monday, the annual inflation rate in Saudi Arabia fell to 1.9% from 2.2% in October.
The consumer price index, which measures inflation, has been hovering around 2.1%-2.3% for the majority of this year. This is due to rising house prices.
According to the General Authority for Statistics in Saudi Arabia, housing rental prices rose 5.4% and passenger transport prices increased by 6.4%.
Saudi Arabia's Real Estate Authority in September outlined new rules to combat'rental increases'. These included a suspension of annual rent increases for both residential and commercial properties within the urban boundaries of Riyadh.
The government passed a law allowing foreigners to purchase property more easily.
As part of its Vision 2030 program, the kingdom is building several new massive developments around Riyadh to boost tourism and the private sectors in an effort to diversify their economy away from oil.
The CPI in November increased by 0.1% on a monthly basis. Reporting by Utkarsh Setti in Dubai, Editing by Neil Fullick
(source: Reuters)